research and trading

research and trading

My trading career started in the summer of 1980 when you buy a membership MidAmerica Commodity Exchange, Chicago, for $ 8,000 and funded my account with $ 10,000. It was literally every penny I had in the world. When I hit the floor, I thought I knew everything. Buy low, sell high - wave my arms around - some pocket money - quit at 1 pm-play golf in the afternoon during the summer, living on the dream merchant. The first few months went well trading the mini-gold exchange agreement offered. By October, I had about $ 30,000 in my account. But it is the seat-of-the-pants trading. On Friday in mid-October, with three hours to go in close I started winging around bigger numbers. By close I lost $ 17,000. My account was now at $ 13,000.

I spent Saturday in the fetal position. I was so mad at myself. Good thing there were no sharp knives in the kitchen or owned a gun. By Sunday, it dawned on me that I could never allow this to happen again because it was simply not professional. How PRO can not allow this to happen and still be called a pro? In the long run, if I did not change, unless I change my trading paradigm, if my mental processes are not changed, it will happen again. And who knows, next time will be worse?


I later realized this loss as my trading PhD. tuition fees.

Over the next months, I investigated every system and model known to man. I learned very quickly to the trading floor that trading discipline is the number one ingredient to produce profits. I asked around, and eventually bugged the hell out of the larger merchants to share some of their secrets. Within a year, people wanted for me.

Mon MidAm, went over the Chicago Stock Exchange [CME] in late 1981. They had currencies. The rest is history.

The tunnel method I am giving you is the culmination of 20 + years of research and trading. It worked then, it works now, and it will work in the future. I believe it works best in currencies and S & P futures contract.